EUR/JPY Price Analysts: Euro set to extend losses, next target at 120.00

• The worst day for equities since April weighs on EUR/JPY.
• Euro drops for the fourth day in a row versus the yen, oversold but with more room for losses.

The EUR/JPY pair accelerated to the downside after falling below the 121.30/40 support area. It bottomed at 120.80 and climbed back toward 121.00.

A consolidation below 121.00 would keep the pressure on the euro intact. The next strong support area is seen at 120.00, with interim support around 120.50. If reach in the short-term, a bullish correction from 120.00, seems likely.

The short-term bias will continue to favor the downside, as long as it holds below 122.00 (downtrend line and the 21-SMA in four hours charts). If EUR/JPY rebounds and rises above 122.00, it would alleviate the pressure. The next resistance stands at 122.60.

EUR/JPY 4-hour chart